Markets volatile…Taiwan arms sale…US leaves climate pact
UNDATED (AP) – World shares and US futures are volatile as investors await results of tight races in battleground states that will determine the outcome of the US presidential election. Markets were jolted today but soon recovered after President Donald Trump, in an early morning appearance at the White House, made premature claims of victories in several key states. As of 6 a.m. Eastern time, Trump and his Democratic challenger Joe Biden still were awaiting results from a handful of key states. Most polls had predicted a Biden victory. Markets in Europe are largely higher after Asia closed higher.
BEIJING (AP) – China has vowed that it will make a “proper and necessary response” if the U.S. proceeds with its latest arms sale to Taiwan. Foreign ministry spokesperson Wang Wenbin says the sale of $600 million in armed drones to the island “brutally interferes in China’s internal affairs and seriously undermines China’s sovereignty and security interests.” Wang says the U.S. should cancel all such sales to Taiwan “so as to avoid further damage to China-U.S. relations and peace and stability in the Taiwan Strait.”
BEIJING (AP) – The world’s biggest online finance company was racing toward a stock market debut when it was derailed by official anxiety about risks in the fledgling industry, jarring global investors and adding to uncertainty about China’s financial markets. Regulators gave no explanation of their surprise order suspending Ant Group’s record-setting $34.5 billion stock offering two days before trading was due to start. But state media and finance experts say Beijing is worried the company might be unable to manage financial risks the ruling Communist Party wants to contain as China tries to get economic growth back on track. The planned market launch of Ant, spun off from e-commerce giant Alibaba Group, symbolized China’s rebound from the coronavirus pandemic.
FRANKFURT, Germany (AP) – German automaker BMW says third-quarter net profit rose 17% to 1.81 billion euros ($2.22 billion) as regional auto markets recovered and highly profitable luxury models such as the 8 Series coupe and X7 large sport-utility vehicle helped fatten the bottom line. The profit figure improved on the 1.55 billion euros recorded in the same quarter a year earlier. Group revenues fell 1.4% to 26.67 billion euros. The company says a decision to focus on expensive luxury models is paying off and producing the profits the company will need to fund new technology such as electric cars.
BERLIN (AP) – The United States has formally left the Paris Agreement, a global pact forged five years ago to avert the threat of catastrophic climate change. The move was long threatened by President Donald Trump and triggered by his administration a year ago. It further isolates the United States in the world but has no immediate impact on international efforts to curb global warming. Some 189 countries remain committed to the 2015 accord, which aims to keep the increase in average temperatures worldwide “well below” 2 degrees Celsius compared to pre-industrial levels.